Saudi pipeline shutdown exposes shrinking global oil-supply buffers
Oil prices have climbed to their highest since May as disruptions to flows through the Strait of Hormuz and the temporary shutdown of Saudi Arabia’s East-West Pipeline tighten global supply.
Gulf countries canceled a planned meeting with Iran on Monday, as the Houthis launched a new attack on Saudi Arabia following ongoing conflict that has escalated the Middle East war. The Houthis reportedly fired dozens of missiles and drones at a military airbase in Khamis Mushait, targeting aircraft hangars, radar systems, runways, and ammunition depots.
They claimed the attack was a retaliation for hundreds of Saudi airstrikes on Yemen in recent days. Saudi authorities issued several emergency alerts in the region, which has faced previous Houthi aggression. Last week, the Houthis carried out a rapid advance in Yemen, ultimately seizing an island in the Red Sea's Bab el-Mandeb strait.
A separate Houthi attack on Saudi Arabia earlier that day severely damaged a key pipeline, the primary route for Middle East oil bypassing the blockaded Hormuz Strait. Oil prices surged over 4% following the weekend's developments, with U.S. diesel hitting a record high. If the pipeline remains out of service for several days, it could disrupt up to 4% of global oil supply.
Oman was set to host a meeting on Monday with Iran and Gulf states to discuss reopening the Hormuz Strait, but the meeting was postponed at Saudi Arabia's request. Iran released a list of 77 ships it accused of violating Hormuz protocols, threatening fines, detention, or confiscation. The expansion of the war into Yemen complicates the United States' stance, as it balances support for Saudi allies with the desire to avoid further escalation.
U.S. President Donald Trump has expressed pressure to end the conflict and lower oil prices ahead of the November mid-term elections.
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- Attack on Saudi Arabian pipeline may cut four percent of world's oil supply middleeasteye.net
- Gulf states call off meeting with Iran; Houthis launch new attack on Saudi brecorder.com
- Iran nuclear chief blocked from Vienna meeting after US pressure channelnewsasia.com
